On-chain data shows that Bitcoin miners have moved around 4.4k BTC to Binance, which could be bearish for the cryptocurrency’s price.
The flow of bitcoins for exchange streaming has increased over the past day
As pointed out by an analyst at CryptoQuant MailThe latest deal appears to have come from mining pool Poolin.
The relevant indicator here is the Exchange Stream Miner, which measures the total amount of coins moving from the wallets of all miners to all exchanges.
When the value of this metric is high, it means that miners are sending a large number of coins to central exchanges at the moment.
Since miners typically move their bitcoins to exchanges for selling purposes, this kind of trend could be a sign of dumping from these chain validators. Thus, it can lead to a bearish result for the price of the cryptocurrency.
On the other hand, low index values indicate that chain validators are not sending that much BTC to exchanges at the moment.
This trend could indicate that miners are not exerting significant selling pressure on the market at the moment, and thus could have a neutral or bullish effect on the value of the currency, depending on other conditions.
Now, here is a graph showing the trend in Bitcoin miners of exchange flow over the past few months:
The value of the metric seems to have been quite high recently | Source: CryptoQuant
As you can see in the chart above, the exchange flow bitcoin miner has noticed a significant uptick over the past day.
The transaction, amounting to about 4.4 thousand bitcoins in total, came from mining wallets linked to the Poolin mining pool, and were sent to the Binance crypto exchange.
Over the past few months, there have also been three other instances of miners sending coins from their reserves to exchanges. Each of these also triggered drops in the price of the cryptocurrency.
If the latest exchange flow miner actually took place with the intention of selling, this could be a bearish rally for the value of the cryptocurrency.
At the time of writing, Bitcoin price is hovering around $20.3K, down 2% in the past seven days. Over the past month, the cryptocurrency has lost 13% of its value.
The chart below shows the currency price trend over the past five days.
Looks like the value of the crypto has been moving sideways during the past few days | Source: BTCUSD on TradingView
Featured image from Marc-Olivier Jodoin on Unsplash.com, charts from TradingView.com, CryptoQuant.com